tailieunhanh - Lecture Survey of Accounting (First edition): Chapter 3 – Kimmel, Weygandt

Chapter 3 - The accounting information system. After reading the material in this chapter, you should be able to: Discuss financial reporting concepts, analyze the effect of business transactions on the basic accounting equation. | The Accounting Information System 3 Kimmel ● Weygandt Survey of Accounting, First Edition Analyze the effect of business transactions on the basic accounting equation. CHAPTER OUTLINE Discuss financial reporting concepts. 1 2 LEARNING OBJECTIVES THE STANDARD-SETTING ENVIRONMENT Generally Accepted Accounting Principles (GAAP) - A set of rules and practices, having substantial authoritative support, that the accounting profession recognizes as a general guide for financial reporting purposes. Standard-setting bodies determine these guidelines: Securities and Exchange Commission (SEC) Financial Accounting Standards Board (FASB) International Accounting Standards Board (IASB) Public Company Accounting Oversight Board (PCAOB) International Note Over 115 countries use international standards (called IFRS). LEARNING OBJECTIVE LO 1 Discuss financial reporting concepts. 1 Generally accepted accounting principles are: a set of standards and rules that are recognized as a general guide for financial reporting. usually established by the Internal Revenue Service. the guidelines used to resolve ethical dilemmas. fundamental truths that can be derived from the laws of nature. Review Question THE STANDARD-SETTING ENVIRONMENT LO 1 INTERNATIONAL INSIGHT The Korean Discount If you think that accounting standards don’t matter, consider recent events in South Korea. For many years, international investors complained that the financial reports of South Korean companies were inadequate and inaccurate. Accounting practices there often resulted in huge differences between stated revenues and actual revenues. Because investors did not have faith in the accuracy of the numbers, they were unwilling to pay as much for the shares of these companies relative to shares of comparable companies in different countries. This difference in share price was often referred to as the “Korean discount.” In response, Korean regulators decided that companies would have to comply with international . | The Accounting Information System 3 Kimmel ● Weygandt Survey of Accounting, First Edition Analyze the effect of business transactions on the basic accounting equation. CHAPTER OUTLINE Discuss financial reporting concepts. 1 2 LEARNING OBJECTIVES THE STANDARD-SETTING ENVIRONMENT Generally Accepted Accounting Principles (GAAP) - A set of rules and practices, having substantial authoritative support, that the accounting profession recognizes as a general guide for financial reporting purposes. Standard-setting bodies determine these guidelines: Securities and Exchange Commission (SEC) Financial Accounting Standards Board (FASB) International Accounting Standards Board (IASB) Public Company Accounting Oversight Board (PCAOB) International Note Over 115 countries use international standards (called IFRS). LEARNING OBJECTIVE LO 1 Discuss financial reporting concepts. 1 Generally accepted accounting principles are: a set of standards and rules that are recognized as a general guide for .